The Study Of Elasticity Of China's Import And Export Commodity

In the past fifty years, China's foreign trade and economic growth have attracted worldwide attention. Especially since the reform and opening to the outside policy was adopted in 1978.China's economy has been developing rapidly with the fast growth of its foreign trade. However, in recent years, the development of China's foreign trade faces many problems.On the basis of absorbing the research results in the past, the paper utilizes the existing statistics which from 1985 to 2004 and use the econometric knowledge of Co-integrated test, Vector error correction, Impulse responses, Variance decomposition and Granger causality test method to conducts the research to our country import-export goods income and the exchange rate elasticity of demand. The study is to find the corresponding solution of the main issues on the development of foreign trade.The first part is the Introduction, including issues, significance of research, literature and research methods and an overview paper structure.The second part mainly focuses on the domestic and foreign macroeconomic situations and China's present foreign trade development. The third part is the core of paper, which mainly includes the determination of I&E elastic model and data selection, the data unit root test, co-integrated test, the vector error correction model as well as the relations between real effective exchange rate and the economic growth of the research on these aspects. The fourth part is conclusion of the paper and some suggestion.The study found that : long term, export of income and exchange rate elasticity of demand are 9.42 and -0.51, import of income and exchange rate respectively 2.31 and 0.05; the short term, export of income and exchange rate elasticity of demand are respectively 6.19 and 0.47, import of income and exchange rate elasticity respectively 3.39 and -0.65. The income elasticity is bigger than the exchange rate elasticity, proved that the domestic and foreign income changes have great influence on our country's foreign trade, while the small appreciation of RMB only have a little influence on our foreign trade. According to the above conclusion we put forward three suggestions: optimize the structure of import and export commodities, improve and advance the reform of RMB...